Asked by Anonymous
Asked on 23 May 2018
It's ok to buy directly from companies (claims wise this applies too) if
1) you know in great detail what you're buying/ doing - in terms of how much to get, what to get, when can claim and how to claim, what's the pros and cons of the product, whether the product is suitable, whether you'll change your mind after 10 years about the product
2) don't mind paying same price for the lack of personal touch
3) ok to wait over customer service hotlines or visit insurance offices if you need to get things done
4) your family is as savvy as you in knowing what to do when things happen and need to get claims up
Do note only selected products can be purchased directly. Important ones like integrated shield plans, savings plans and investments you'll still have to go through the agent or banker.
Buy directly if possible. Same as investment.
Be it directly or agent, you have to be prudent and have some knowledge to read the clauses and know what you are covered for. Nobody is going to know you better than yourself. You need to know what you need and what you do not need.
Do not let anyone tell you that it is complicated and makes you feel uncertain of your decisions. There is so much information in the Internet that the only hurdle is laziness.
To conclude, yes it is okay to buy insurance from companies directly. I will do the same when it comes to claiming insurance. Imagine the scenario where your agent no longer works, the company will assign you another agent. It will be the same when you buy directly, they will assign you an agent. the only BIG different is, you pay the agent's salary when you buy from them. So, why spend more when both achieve the same goal?
Currently only a few insurance plans are available to buy online in Singapore. When buying online or directly, you would have to be prudent and knowledgeable to read the clauses and know what you are covered for.
Consider this scenario - would you prefer to diagnose yourself based on WebMD or would you still go to a doctor to get a diagnosis and prescription? Given so many medical terms and medications, you would be confused on what you would have to consume to cure your sickness. And this is provided you have already correctly done your own diagnosis. I believe you would choose to go with the latter despite knowing that you have to pay for consultation fee because you can trust a doctor's professionalism.
The same goes for buying online. Insurance planning can be complicated, given how many companies and products are available in the market. By working with a trusted insurance agent, you would be able to run through your finances and what are the coverages you need. And when it comes to claims, you can just give your agent a call and he'll process it for you in the whole claims procedure. You'll save yourself alot lesser trouble and time to submit your own claims. This is pertaining to minor claims.
If you look at a major claims, it would be most likely you are down with a critical illness or you are dead. When you are down with a CI, I believe you would be low on your energy and doing the whole claims procedure yourself can be quite tiring when you are focusing on recovery and planning what is next. Your partner might not be efficient or equipped enough to run through the whole claims procedure - afterall this is not his bread and butter. The same applies for the payout when you are no longer around.
In addition to the above factors, if you are buying insurance plans directly from companies which can be sold by an agent and not exclusively available online, it is almost certain that the company will still direct you with one of their agents.
If you want to have a quotation, you can drop me an email ([email protected]) to set an appointment with me.
I hope I have helped!
TLDR - Go with an agent for a less headache and much easier process.
The advantages of having an agent is that in the event of a claim
your agents can advice on things to state or avoid during the claim process
Process all your documents for you
provides advice on what do or avoid during the occurrence of the event
buying direct is cheaper but you need to know all the TnC very clearly and in the event that you need heavy assistance you only have the customer service officer
Usually when you buy an insurance product directly from an Insurer, you will still be assigned an Agent from the insurer. (Unless this is a DP policy)
There will not be an price differences when you buy directly inbranch or via agent.
However i strongly encourage you to think about the following things
1) Personal product knowledge
Would you be adequate enough in knowledge to buy the product or an industry expert who have good statistic and information to assist you. Of course the reliablity of the expert should be one of the top concern.
2) Convenient of search
Imagine you want to spread the risk and put all your insurance coverage in different companies as they might be better in different product catagory, would you want to run around and hunt yourself. An Agent who represent all companies might help alot in consolidating comparison for you
Agent are paid via commission for every deals they make. But the true test of it comes from the claims assistance. A good agent will assist you in ensuring your financial well-being are covered in times you need and ensure claims are paid swifty.
Agents are not the ones who process the claims.
They are also not legally obligated to help you with your claims.
Dont believe the fear mongering by agents.